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To: willcousa who wrote (61288)	9/14/2002 2:31:49 PM
From: BWAC	Read Replies (1) \| Respond to of 77399

<Remember that if interest rates double the market value of your bonds will be cut in half and you will never recoup your losses unless rates are brought back to current levels - a long, slow process.> What?! But my Broker Pimp is telling me to BUY!!!!Bonds!!!!!! now? Of course the new bond investors can just wait until maturity to recoup the whole face value of their investment. If they are willing to accept 3% interest for X number of years.

To: willcousa who wrote (61288)	9/15/2002 10:07:40 AM
From: RetiredNow	Respond to of 77399

Exactly. That is why having realized I was underweight in bonds over the last couple of years, I'm not rushing out to get into bonds right now. I realize it would be buying in at a high only to realize losses if the economy recovers or if interest rates start to rise, which is inevitable within the next year or so.

To: willcousa who wrote (61288)	9/16/2002 11:25:15 AM
From: larry	Read Replies (1) \| Respond to of 77399

Willcousa, Well, you can always buy patriot bonds (EE and I bonds). Each person in your family can buy up to $45,000/year(135,000/year for a three person family, not that bad)and you can also charge the purchase to cash rebate card to maximize your gains (although meager, it's better than losing $ anyway). It's safer and you won't have any losses in any case. The worst is that the interest goes to 0 and you earn nothing if we are hit by deflation. It's just that much better than money market funds that we have been buying them like crazy. We are underweighing traditional government bonds because of the risks you cited. I just don't see that we are in a good time to purchase stocks for the long run. Not right now anyway. good luck, larry